Logo ofUnited Cooperative Assurance Co. (UCA)
United Cooperative Assurance Co.’s (UCA) board of directors recommended on Dec. 8 a 25% capital cut, lowering it to SAR 300 million from SAR 400 million. 
The move aims to restructure the company’s capital, according to a statement on Tadawul.
CapitalCut Details
CurrentCapital
SAR400mln
Current Number of Shares
40 mln shares
NewCapital
SAR 300 mln
New Number of Shares
30 mln
Reduction (%)
25%
Reason
Restructuring the company’s capital to write off accumulated losses worth SAR 100 million.
Date of Reduction
End of second trading day after the extraordinary general meeting (EGM) date
Method of Reduction
Writing off ten million shares (0.25 share per share).
For more news on listed companies
The capital cut is pending the approval of the competent authorities and the extraordinary general meeting (EGM), the statement added.
UCA will issue a formal announcement upon the appointment of a financial advisor and the submission of the capital reduction request to the Capital Market Authority for approval.
According to data available on Argaam, UCA’s board decided on Sept. 8 to cancel its recommendation to raise capital to SAR 700 million through a SAR 300 million rights offering.
Logo ofUnited Cooperative Assurance Co. (UCA)
United Cooperative Assurance Co.’s (UCA) board of directors recommended on Dec. 8 a 25% capital cut, lowering it to SAR 300 million from SAR 400 million.
The move aims to restructure the company’s capital, according to a statement on Tadawul.
CapitalCut Details
CurrentCapital
SAR400mln
Current Number of Shares
40 mln shares
NewCapital
SAR 300 mln
New Number of Shares
30 mln
Reduction (%)
25%
Reason
Restructuring the company’s capital to write off accumulated losses worth SAR 100 million.
Date of Reduction
End of second trading day after the extraordinary general meeting (EGM) date
Method of Reduction
Writing off ten million shares (0.25 share per share).
For more news on listed companies
The capital cut is pending the approval of the competent authorities and the extraordinary general meeting (EGM), the statement added.
UCA will issue a formal announcement upon the appointment of a financial advisor and the submission of the capital reduction request to the Capital Market Authority for approval.
According to data available on Argaam, UCA’s board decided on Sept. 8 to cancel its recommendation to raise capital to SAR 700 million through a SAR 300 million rights offering.
